Oil PSU stock to buy: ICICI Direct picks this multi-bagger oil stock trading under Rs 390; check out target and stop loss

The equity benchmark indices Sensex and Nifty closed over 1 per cent lower on Thursday (August 8) after the Reserve Bank of India (RBI) opted to hold the policy rate steady for the ninth time in a row.

The 30-share BSE Sensex fell 581.79 points, or 0.73 per cent, to 78,886.22 in turbulent trading. During the day, it dropped 669.07 points, or 0.84 per cent, to 78,798.94.

Despite this, an earning opportunity is emerging in the oil marketing company Hindustan Petroleum Corporation Limited (HPCL). The brokerage ICICI Direct has advised to buy this stock for the next 30 days. Today, shares of HPCL closed at Rs 388.9 apiece, down 1.97 per cent on BSE. There has been a continuous decline in this stock for the last few trading sessions. Although the chart is bullish. At present, this stock is continuously above the exponential moving average of 10, 20, and 50 days.

Share price target of HPCL

The brokerage has recommended buying HPCL stock for up to 30 days. The buying range is Rs 389-397. The target and stop loss is Rs 426 and Rs 376 respectively. This way, the stock has a potential upside of up to seven per cent.

ICICI Direct's view on HPCL

HPCL's 52 week high is Rs 406.7 which it made on July 31. On August 5, when the effect of global selling was seen in the market, this stock had made a low of Rs 377. The stop loss of the brokerage is at this level. There is also an increase in volume which is going to support the direction of the stock.

Share price history of HPCL

Oil refining and marketing HPCL is a multi-bagger stock. This stock has given returns of almost 19 per cent in one month, 12 per cent in three months, 11 per cent in six months, 46 percent so far this year, 120 per cent in one year, and 144 percent in two years.